Answer:
A
Explanation:
Marginal cost is the change in total cost when output is increased by 1 unit
total cost = average cost x quantity
Marginal cost = (151 x 24.55) - (150 x 24.50) = 32.05
marginal
Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $35,004 at the beginning of each year. The first payment is received on January 1, 2020. Crosley had purchased the machine during 2019 for $160,000. Collectibility of lease payments by Crosley is probable. Crosley set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Crosley at the termination of the lease.
Instructions:
a. Compute the amount of the lease receivable.
b. Prepare all necessary journal entries for Crosley for 2020.
c. Suppose the collectibility of the lease payments was not probable for Crosley. Prepare all necessary journal entries for the company in 2020.
d. Suppose at the end of the lease term, Crosley receives the asset and determines that it actually has a fair value of $1,000 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term.
Answer:
A.$230,410
B. 01-Jan-17
Lease Receivable $230,410
Cost of Goods Sold $160,000
Sales Revenue $230,410
Inventory $160,000
01-Jan-17
Dr Cash $35,004
Cr Lease Receivable $35,004
31-Dec-17
Dr Lease Receivable $11,724
Cr Interest Revenue $11,724
C)01-Jan-17
Dr Cash $35,004
Cr Deposit Liability $35,004
D. Dr Inventory $1,000
Cr Gain on Lease $1,000
Explanation:
A. Computation for the amount of the lease receivable.
PV of lease= PV(rate, nper, pmt, [fv]), [type])
PV of lease= -PV (6%,8,35004, , 1)
PV of lease =$230,410
Therefore the amount of the lease receivable is $230,410
B. Preparation of all necessary journal entries for Crosley for 2020.
01-Jan-17
Lease Receivable $230,410
Cost of Goods Sold $160,000
Sales Revenue $230,410
Inventory $160,000
01-Jan-17
Dr Cash $35,004
Cr Lease Receivable $35,004
31-Dec-17
Dr Lease Receivable $11,724
Cr Interest Revenue $11,724
C. Preparation of all necessary journal entries for the company in 2020.
01-Jan-17
Dr Cash $35,004
Cr Deposit Liability $35,004
D. Preparation to Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term
Dr Inventory $1,000
Cr Gain on Lease $1,000
Compute the future value of a $105 cash flow for the following combinations of rates and times.
a. r = 8%; t = 10 years
b. r = 8%; t = 20 years
c. r = 4%; t = 10 years
d. r = 4%; t = 20 years
Answer:
The answer is
A. $226.69
B. $489.40
C. $155.43
D. $230.07
Explanation:
A.
PV = 105
i = 8%
N = 10years
FV =. ?
Using texas BA II plus
PV -105; I/Y = 8; N = 10; CPT FV= 226.69
Therefore, future value of $105 is $226.69
B.
PV = 105
i = 4%
N = 10years
FV =. ?
Using texas BA II plus
PV -105; I/Y = 8; N = 20; CPT FV= 489.40
Therefore, future value of $105 is $489.40
C.
PV = 105
i = 4%
N = 10years
FV =. ?
Using texas BA II plus
PV -105; I/Y = 4; N = 10; CPT FV= 155.43
Therefore, future value of $105 is $155.43
D.
PV = 105
i = 4%
N = 20years
FV =. ?
Using texas BA II plus
PV -105; I/Y = 4; N = 20; CPT FV= 230.07
Therefore, future value of $105 is $230.07
Hollyfield Corporation sold a piece of equipment on September 30, 2018 for $201,000 cash. The equipment had been purchased on January 1, 2012 for $450,000. It had an estimated useful life of 10 years and a $50,000 residual value. Hollyfield Corp. has been using the straight-line method of depreciation and has a year-end of December 31st. Compute the gain or loss on disposal.
Answer:
$2,000
Explanation:
the gain or loss on disposal is
Mark, an HR Manager at Pyramid Inc., is responsible for the HR planning process in his organization. He has reviewed the organization's strategic plans. Which of the following is most likely to be Mark's next step in the planning process?
a. Develop HR staffing plans and actions
b. Compile HR planning forecasts
c. Implement HR staffing plans and actions
d. Assess external and internal workforce
Answer: d. Assess external and internal workforce
Explanation:
There are four steps involved in the HR planning process in an organization. The first step is the one that Mark just completed of reviewing the organization's strategic plans.
The next thing to do is the assess both the internal and external workforce of the organization so as to better understand them. After this step he would have to compile HR planning forecasts and then design HR staffing plans based on the strategic goals of the organization.
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,372,578 61,800 machine-hours Processing orders $63,235 2,010 orders Inspection $151,316 2,090 inspection-hours The company makes 600 units of product W26B a year, requiring a total of 1,200 machine-hours, 78 orders, and 34 inspection-hours per year. The product's direct materials cost is $49.55 per unit and its direct labor cost is $12.44 per unit. The product sells for $128.70 per unit. According to the activity-based costing system, the product margin for product W26B is:_____.a. $8,458.52.b. $10,920.12.c. $40,026.00.d. $10,912.40.
Answer:
The correct answer is A.
Explanation:
First, we need to calculate the activities rates:
Assembly= 1,372,578/61,800= $22.21 per machine-hour
Processing orders= 63,235/2,010= $31.46 per order
Inspection= 151,316/2,090= $72.4 per inspection-hour
Now, we allocate costs to W26B:
Assembly= 22.21*1,200= 26,652
Processing orders= 31.46*78= 2,453.88
Inspection= 72.4*34= 2,461.6
Total allocated costs= $31,567.48
Finally, the unitary cost and margin for W26B:
Unitary allocated cost= 31,567.48/600= $52.61
Unitary total cost= 49.55 + 12.44 + 52.61= $114.6
Product margin= 128.7*600 - 114.6*600= $8,460
East Valve Distributors distributes industrial valves and control devices. The Eastern control device has an annual demand of 9,375 units and sells for $100 per unit. The cost of ordering is $40 per order and the average carrying cost per unit per year is $0.75. Determine the economic order quantity.
Answer:
1000
Explanation:
Given:
Annual DEMAND, D = 9375
Holding cost, H = 0.75
Cost per order, S = 40
The Economic order quantity :
EOQ = √[(2 * D * S) / H]
EOQ = √[(2 * 9375 * 40) / 0.75]
EOQ = √[(750000) / 0.75]
EOQ = √1000000
EOQ = 1000
Your dream is about to come true! You are about to buy your first classic sports car. To do so, you have arranged to borrow $65,000 from your local credit union. The interest rate on the loan is 6.00%. To simplify the calculations, assume that you will repay your loan over the next four years by making annual payments at the end of each year. According to the loan officer at the credit union, you must answer the following questions before you can go pick up your new car.
a. How much is the annual payment on your new car loan?
b. How much of your Year 2 payment will constitute interest on your loan?
c. How much of your Year 3 payment will be used to repay principal on the loan?
d. How much will you pay in total interest to finance the purchase of your $65,000 car?
Answer:
Car Loan
a. The annual payment on the new car loan = $18,758.45.
b. Year 2 payment that is interest on the loan = $3,008.49.
c. Year 3 payment that is principal repayment = $16,694.95
d. The total interest to be paid to finance the purchase of the $65,000 car is:
= $10,033.79.
Explanation:
Data and Calculations:
Loan Amount 65000
Loan Term 4 years 0 months
Interest Rate 6
Compound Annually (APY)
Pay Back Every Year
Results:
Payment Every Year $18,758.45
Total of 4 Payments $75,033.79
Total Interest $10,033.79
Principal 87%
Interest 13%
Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $65,000.00 $3,900.00 $14,858.45 $50,141.55
2 $50,141.55 $3,008.49 $15,749.95 $34,391.60
3 $34,391.60 $2,063.50 $16,694.95 $17,696.65
4 $17,696.65 $1,061.80 $17,696.65 -$0.00
The controller of Sandhill Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,880 3,820 February 3,273 4,364 March 3,928 6,546 April 4,632 8,619 May 3,491 5,455 June 4,844 8,730 (a1) Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.)
Answer:
Variable cost per unit= $0.4
Explanation:
Giving the following information:
Month Total Maintenance Costs Total Machine Hours
January $2,880 3,820
February 3,273 4,364
March 3,928 6,546
April 4,632 8,619
May 3,491 5,455
June 4,844 8,730
To calculate the variable component using the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,844 - 2,880) / (8,730 - 3,820)
Variable cost per unit= $0.4
A five-year note payable would appear on the balance sheet as a(n) a.disclosure in the notes only. b.long-term liability for the entire amount owed. c.current liability for any portion due within one year. d.intangible asset.
Answer: current liability for any portion due within one year
Explanation:
Notes payable are referred to as the written agreements whereby one party agrees to pay the other party a certain amount of money.
It should be noted that on the balance sheet, notes payable will appear as liabilities. In a situation when the amount is due within a year, then it's considered to be current liabilities while it's regarded as a long-term liability when it's more than a year,
It should be noted that a five-year note payable would appear on the balance sheet as current liability for any portion due within one year.
Bell Corporation reports that at an activity level of 8,700 units, its total variable cost is $653,109, and its total fixed cost is $658,416.
Required: For the activity level of 8,800 units, assume this level is within the relevant range. Compute: the total variable cost, the total fixed cost, the total cost, the average variable cost per unit, the average fixed cost per unit, and the average total cost per unit.
There is not a word length requirement for this question; however, you must show your work.
Answer:
Bell Corporation
The total variable cost is = $660,616
The total fixed cost is = $658,416
The total cost is = $1,319,032
The average variable cost per unit is = $75.07
The average total cost per unit is = $149.89
Explanation:
a) Data and Calculations:
Current activity level = 8,700 units
Variable cost based on the current activity level = $653,109
Unit variable cost = $75.07 ($653,109/8,700)
Fixed cost = $658,416
At activity level of 8,800 units, since 8,800 units are within the relevant range:
The total variable cost = $660,616 (8,800 * $75.07)
The total fixed cost = $658,416 (same as at 8,700 units)
The total cost = $1,319,032 ($660,616 + $658,416)
The average variable cost per unit = $75.07 ($653,109/8,700)
The average total cost per unit = $149.89 ($1,319,032/8,800)
Truck-Or-Treat specializes in leasing trucks to delivery companies. It is considering adding 25 more trucks to its available stock. Doing so will not change the risk of the company's business. The trucks depreciate over five years under the straight-line depreciation method, all the way to zero. Truck-Or-Treat believes that these newly added trucks would be able to bring the company $220,000 in annual earnings before taxes and depreciation (i.e., sales revenue minus costs of goods sold) for five years. The company is unlevered. It is in 21 percent tax rate bracket. The required annual rate of return on Truck-Or-Treat's unlevered equity is 15 percent. The risk-free rate, e.g., the Treasury bill rate, is 6 percent per year.
Required:
Calculate the maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company. (In other words, what should be the "initial investment" of this unlevered truck project such that the project's NPV equals $0?
Answer:
The maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company is $510,702.49.
Explanation:
Let:
x = Maximum price for the new truck = initial investment = ?
AEBTD = Annual earnings before taxes and depreciation = $220,000
T = Tax rate = 21%, or 0.21
n = Number of years = 5
Since the it is assumed that Truck-or-Treat remains an unlevered company, this implies the required annual rate of return on Truck-Or-Treat's unlevered equity of 15 percent is the relevant rate of return to use.
Therefore, we have:
r = required annual rate of return = 15%, or 0.15
D = Annual depreciation = Maximum price for the new truck / Number of useful years = x / 5 = 0.2x
P = Annual cash flow = ((AEDTD - D) * (1 - T)) + D = ((220000 - 0.2x) * (1 - 0.21)) + 0.2x = ((220000 - 0.2x) * 0.79) + 0.2x = 173,800 - 0.158x + 0.2x = 173,800 - 0.042x
Using the formula for calculating the present value (PV) of an ordinary annuity, we have:
PVP = Present value of annual cash flow = P * ((1 - (1/(1 + r))^n) / r) = (173,800 - 0.042x) * ((1 - (1/(1 + 0.15))^5) / 0.15) = (173,800 - 0.042x) * 3.3521550980114 = 582,604.56 - 0.140790514116479x
For the NPV of this unlevered truck project to be equal to $0, we must have:
x = PVP
That is:
x = 582,604.56 - 0.140790514116479x
Solving for x, we have:
x + 0.140790514116479x = 582,604.56
x(1 + 0.140790514116479) = 582,604.56
x1.140790514116479 = 582,604.56
x = 582,604.56 / 1.140790514116479 = $510,702.49
Therefore, the maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company is $510,702.49.
An important strength of the trait approach to leadership is that it: a. can help with leadership selection and development. b. helps in analyzing the situational demands. c. specifies which traits are needed for leadership in a given situation. d. specifies how much of a given trait is important for leadership.
Answer: A. can help with leadership selection and development.
Explanation:
The focus of the trait approach to leadership is on the personal attributes of a leader like the values, competencies, the physical and personality characteristics, etc.
Here, focus isn't on the followers but rather on the leader as it's concerned with the leaders traits. The leaders traits are vital to the leadership process. This can help with leadership selection and development.
Assume that a $1,00,000 par value, semiannual coupon U.S. Treasury note with five years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the bond is 11.00%. Using ths information and ignoring the other costs involved, the value of the T-note is calculated as $773,871.23
Based on this calculation and an understanding of semiannual coupon bonds, complete the following statements:
1. Assuming the interest rates remain constant, the T-notes price is expected to _____________. (Increase or Decrease) Please Explain Why.
2. The T-note described is selling at a ________________. (Premium or Discount) Please Explain Why.
3. When valuing a semiannual coupon bond, the time period N in the present value formula used to calculate the price of the bond is treated in terms of ____________ periods. (Annual, 6 month, 4 month, 12 month)
Answer:
Completing the following statements based on the calculations and an understanding of semiannual coupon bonds:
1. Assuming the interest rates remain constant, the T-notes price is expected to _____________. (Increase or Decrease).
The reason for the increase in the T-notes price is the addition of the amortization for the 6-month period of $17,563.
2. The T-note described is selling at a ________________. (Premium or Discount)
The T-note sells at a discount because the face value is greater than the price. This implies that at the end of the maturity period of 5 years, the amount that will be received or paid is $1,000,000 and not the price that was initially received or paid.
3. When valuing a semiannual coupon bond, the time period N in the present value formula used to calculate the price of the bond is treated in terms of ____________ periods. (Annual, 6 month, 4 month, 12 month)
Semiannual = 6 months (12/2).
Explanation:
a) Data anc Calculations:
Face value of semiannual coupon U.S. Treasury note = $1,000,000
T-note price = $773,871.23
Discount on the note = $226,128.77 ($1,000,000 - $773,871.23)
Maturity period = 5 years
Coupon rate = 5%
Yield rate = 11%
Semiannual coupon payment = $25,000 ($1,000,000 * 2.5%)
Semiannual interest expense = $42,563 ($773,871.23 * 5.5%)
Amortization of discount = $17,563 ($42,563 - $25,000)
Suppose that Raphael, an economist from an AM talk radio program, and Susan, an economist from a school of industrial relations, are arguing Over saving incentives. The following dialogue Shows an excerpt from their debate:
Susan: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards.
Raphael: I think a switch from the income tax to a consumption tax would bring growth in living standards.
Susan: You really think households would change their saving behavior enough in response to this to make a difference? Because I don't.
The disagreement between these economists is most likely due to_____________ . Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Rent ceilings reduce the quantity and quality of available housing.
b. Immigrants receive more in government benefits than they contribute in taxes.
c. Having a single income tax rate would improve economic performance.
Answer:
a. Difference in values
b. a. Rent ceilings reduce the quantity and quality of available housing.
Explanation:
The disagreement between these economists is most likely due to difference in values.
Economists are known to disagree a lot with each other and this is down to them having different values and perspectives with regards to several economic decisions. This is why there are different economic theories subscribed to by economists such as Keynesian and New Classical theories.
Despite these disagreements however, there are certain things they would always agree on and one of those is that rent ceilings reduce the quantity and quality of available housing.
The logic behind this is that imposing a rent ceiling would dissuade real estate investors from putting in more money to develop properties because the rent ceiling would limit the returns that they can get.
Supply of real estate would also fall because less investors would go into the market because they would fear being unable to recoup adequate returns on account of the rent ceiling.
California wildfires destroy vineyards across the Napa Valley. This is during the season when wine festivals occur most often all over the country. Demonstrate the effect of these events on the equilibrium price and quantity of wine.
Answer:
As a result of the wildfire, supply would fall. there would be a leftward shift of the supply curve. the quantity supplied of wine would reduce and price would increase
as a result of the festival, there would be an increase in demand. this would lead to an outward shift of the demand curve. Thus, the quantity demanded would increase and price would increase
taking these two effects together, there would be an indeterminate change in equilibrium quantity and equilibrium price would increase
Explanation:
What would be the average tax rate for a person who paid taxes of $8,016.30 on a taxable income of $63,220? (Enter your answer as a percent rounded to 2 decimal places.)
Answer: trtrtr
Explanation:rtrrtrr
___ is the total sum of benefits a purchasing firm obtains for the price it pays for the marketing offering.
is the total sum of benifits a purchesing firm for the price for the marketing offering quality
Required information
[The following information applies to the questions displayed below.]
The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:
Accounts Debits Credits
Cash $ 48,500
Accounts Receivable 32,700
Land 117,800
Accounts Payable 16,000
Notes Payable (due in 2 years) 37,000
Common Stock 107,000
Retained Earnings 39,000
Totals $ 199,000 $ 199,000
The following is a summary of the transactions for the year:
1. January 12 Provide services to customers on account, $69,400.
2. February 25 Provide services to customers for cash, $78,800.
3. March 19 Collect on accounts receivable, $46,400.
4. April 30 Issue shares of common stock in exchange for $37,000 cash.
5. June 16 Purchase supplies on account, $13,500.
6. July 7 Pay on accounts payable, $12,000.
7. September 30 Pay salaries for employee work in the current year, $71,200.
8. November 22 Pay advertising for the current year, $23,200.
9. December 30 Pay $3,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Accrued interest on the notes payable at year-end amounted to $3,200 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $2,200 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,000.
8-a. Prepare an income statement for the year ended December 31, 2021.
Answer:
Jackrabbit Rentals
Jackrabbit Rentals
Income Statement
For the ended December 31, 2021.
Service Revenue $148,200
Salaries Expenses $73,400
Advertising Expenses 23,200
Interest Expense 3,200
Supplies Expenses 10,500 110,300
Net income $37,900
Explanation:
a) Data and Calculations:
Beginning Balances at January 1, 2021:
Accounts Debits Credits
Cash $ 48,500
Accounts Receivable 32,700
Land 117,800
Accounts Payable $16,000
Notes Payable (due in 2 years) 37,000
Common Stock 107,000
Retained Earnings 39,000
Totals $ 199,000 $ 199,000
Transaction Analysis:
1. January 12 Accounts Receivable $69,400 Service Revenue $69,400
2. February 25 Cash, $78,800 Service Revenue $78,000
3. March 19 Cash $46,400 Accounts receivable, $46,400
4. April 30 Cash $37,000 Common stock $37,000
5. June 16 Supplies $13,500 Accounts Payable $13,500
6. July 7 Accounts payable, $12,000 Cash $12,000
7. September 30 Salaries Expenses $71,200 Cash $71,200
8. November 22 Advertising Expenses $23,200 Cash $23,200
9. December 30 Dividends $3,600 Cash $3,600
Adjusting entries:
Interest Expense $3,200 Interest Payable $3,200
Salaries Expenses $2,200 Salaries Payable $2,200
Supplies Expenses $10,500 $10,500
Service Revenue $148,200
Accounts receivable $69,400
Cash, 78,800
Salaries Expenses
Cash $71,200
Salaries Payable 2,200 73,400
Advertising Expenses 23,200
Interest Expense 3,200
Supplies Expenses 10,500
A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation. EMOD is the estimated price of this bondat an interest rate of 7.0% using the first-order modified approximation.Calculate EMAC - EMOD A. 91 B. 102 C. 116 D. 127 E. 143
Answer:
8.4%
Explanation:
If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Assets increase $4,500 and liabilities decrease $4,500. Liabilities decrease $4,500 and assets increase $4,500. Equity decreases $4,500 and liabilities increase $4,500. Assets increase $4,500 and liabilities increase $4,500.
Answer: Assets increase $4,500 and liabilities increase $4,500.
Explanation:
Based on the information given in the question, since the company buys an equipment which is an asset to the company, then there will be an increase in the assets by $4500.
Also, in thus case, the equipment was gotten on credit which is a liability. Therefore, the liabilities will increase by $4500 as well.
Pollution Busters Inc. is considering a purchase of 10 additional carbon sequesters for $100,000 apiece. The sequesters last for only 1 year before becoming saturated. Then the carbon is sold to the government. a. Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $115,000 for sure. What is the opportunity cost of capital for this investment
Answer:
15percent o 100 annually
Explanation:
opportunity cost =(115-100/100)*100
Sandhill Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.
June
1 Purchased books on account for $2,575 (including freight) from Catlin Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,300. The cost of the merchandise sold was $900.
6 Received $75 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,150. The cost of the merchandise sold was $750.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 3/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,900. The cost of the merchandise sold was $970. 30 Granted General Bookstore $130 credit for books returned costing $90.
Required:
Journalize the transactions for the month of June for Sandhill Warehouse, using a perpetual inventory system.
Answer:
01-Jun
Dr Inventory $2,575
Cr Accounts Payable $2,575
03-Jun
Dr Accounts Receivable $1,300
Cr Sales $1,300
03-Jun
Dr Cost of goods sold $900
Cr Inventory $900
06-Jun
Dr Accounts Payable $75
Cr Inventory $75
09-Jun
Dr Accounts Payable $2,500
Cr Cash $2,450
Cr Inventory $50
15-Jun
Dr Cash $1,300
Cr Accounts Receivable $1,300
17-Jun
Dr Accounts Receivable $1,150
Cr Sales $1,150
17-Jun
Dr Cost of goods sold $ 750
Cr Inventory $ 750
20-Jun
Dr Inventory $ 900
Cr Accounts Payable $ 900
24-Jun
Dr Cash $1,127
Dr Sales Discounts $ 23
Cr Accounts Receivable $1,150
26-Jun
Dr Accounts Payable $ 900
Cr Cash $873
Cr Inventory $27
28-Jun
Dr Accounts Receivable $1,900
Cr Sales $1,900
28-Jun
Dr Cost of goods sold $970
Cr Inventory $970
30-Jun
Dr Sales Returns & Allowances $130
Cr Accounts Receivable $130
30-Jun
Dr Inventory $90
Cr Cost of goods sold $90
Explanation:
Preparation of the journal entries for the month of June for Sandhill Warehouse, using a perpetual inventory system.
01-Jun
Dr Inventory $2,575
Cr Accounts Payable $2,575
03-Jun
Dr Accounts Receivable $1,300
Cr Sales $1,300
03-Jun
Dr Cost of goods sold $900
Cr Inventory $900
06-Jun
Dr Accounts Payable $75
Cr Inventory $75
09-Jun
Dr Accounts Payable $2,500
($2,575-$75)
Cr Cash $2,450
($2,500-$50)
Cr Inventory $50
($2,500*2%)
15-Jun
Dr Cash $1,300
Cr Accounts Receivable $1,300
17-Jun
Dr Accounts Receivable $1,150
Cr Sales $1,150
17-Jun
Dr Cost of goods sold $ 750
Cr Inventory $ 750
20-Jun
Dr Inventory $ 900
Cr Accounts Payable $ 900
24-Jun
Dr Cash $1,127
($1,150-$23)
Dr Sales Discounts $ 23
($1,150*2%)
Cr Accounts Receivable $1,150
26-Jun
Dr Accounts Payable $ 900
Cr Cash $873
($900-$27)
Cr Inventory $27
(900*3%)
28-Jun
Dr Accounts Receivable $1,900
Cr Sales $1,900
28-Jun
Dr Cost of goods sold $970
Cr Inventory $970
30-Jun
Dr Sales Returns & Allowances $130
Cr Accounts Receivable $130
30-Jun
Dr Inventory $90
Cr Cost of goods sold $90
A bond pays annual interest its coupon rate is 9.2% lts value at maturity is $1,000. lt matures in 4 years. Its yield to maturity is currently 6.2%.What is the duration of this bond in years.A. 3.11B. 4.00C. 3.55D. 3.34
Answer:
Modified = 3.34
Macaulay = 3.55
Explanation:
Given :
Coupon rate = 9.2%
Value to maturity or face value = $1000
Yield to maturity = 6.2%
Years to maturity = 4 years
The bond duration in years cab be obtained using a financial calculator or excel ;
Inputting the values above into a financial calculator :
The modified duration is : 3.340
Tbe Macauley duration : 3.547
10. Which of the following is NOT a reason that real GDP is a poor measure of a nation's
economic welfare?
A)Real GDP omits measures of political freedom.
b) Real GDP does not consider the value of people's leisure time.
c) Real GDP does not include the underground economy.
D) Real GDP omits household production.
Answer:
A)Real GDP omits measures of political freedom.
Explanation:
The Real Gross Domestic Product is a measure of all the goods produced in an economy within a year but with changes in price levels triggered by inflation factored in. Political freedom does not affect economic freedom. People may be restricted politically but still, go about their normal economic activities.
Because the Real GDP basically focuses on transactions done in the markets, it might not accurately measure the growth rate because some people conduct illegal businesses underground that are not captured by the government, while some produce their goods at home. Also, leisure time is not factored and it is important because an increase in leisure time will affect time spent in activities that improve the economy.
Economic growth and public policy
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign investment in Argentina. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?
a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
b. Give families cash payments on the condition that their children show up for school and medical exams.
c. Increase taxes on income from savings.
d. Protect property rights and enforce contracts.
Answer:
a. Foreign Portfolio Investment
b. a. Provide tax breaks and patents for firms that pursue research and development in health and sciences.
d. Protect property rights and enforce contracts.
Explanation:
This is an example of Foreign Portfolio Investment (FPI). Foreign portfolio investment is when an entity from a foreign country invests in another country by buying the shares of a company in the local country. The American company bought shares in Argentina so the qualifies as FPI.
To increase productivity companies that are pursuing research should be given patents and tax breaks. The tax breaks will enable them have more money to reinvest into the research and the patent will provide incentive to them to continue the research knowing full well that they will be compensated by being the only ones to be able to use the technology invented for some time.
Also protecting property rights and enforcing contracts encourages investment in a country because people will be more trusting of making a return from business dealings. Higher investment leads to more productivity and growth.
Mighty Safe Fire Alarm is currently buying 62,000 motherboards from MotherBoard, Inc. at a price of $66 per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $32 per unit; direct labor, $12 per unit; and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $87,000. Which option should be selected and why
Answer:
d) Make, Increase in profits $434,000
Explanation:
Differential analysis
Make Buy
Direct material (62000I*32) $1,984,000
Direct labor (62000*12) $744,000
Variable overhead (62000*15) $930,000
Purchase cost (62000*66) $4,092,000
Total relevant cost $3,658,000 $4,092,000
So, the Company Should make because the cost is lower. Increase in profits $434,000 ($,092,000-$3,658,000)
urrent Attempt in Progress Wildhorse Chemicals management identified the following cash flows as significant in its year-end meeting with analysts: During the year Wildhorse had repaid existing debt of $317,900 and raised additional debt capital of $645,200. It also repurchased stock in the open market for a total of $44,750. What is the net cash provided by financing activities
Answer:
$282,550
Explanation:
Calculation to determine the net cash provided by financing activities
Using this formula
Net cash provided by financing activities= Additional debt capital -Repaid existing debt- Repurchased stock
Let plug in the formula
Net cash provided by financing activities=$645,200-$317,900-$44,750
Net cash provided by financing activities=$282,550
Therefore the net cash provided by financing activities is $282,550
did you mom ever yell at you
Answer:
yeah everyone mother yelled every child for their life
A physical count of merchandise inventory on November 30 reveals that there are 96 units on hand. Cost of goods sold (rounded) under FIFO is
Answer: $1,712
Explanation:
If the company uses FIFO it means that they sell their earlier inventory first. If there are 96 units on hand, it means that these 96 units would be the latest inventory.
That means that these 96 units comprise of:
86 units purchased on November 25 at $6.30 each and,10 units from the November 17 purchase of 58 units at $6.05 each which means 48 units were sold from this purchase.The units sold were therefore:
= (29 * 5.80) + (115 * 6.20) + (48 * 6.05)
= 168.20 + 713 + 290.40
= $1,171.60
= $1,712
The Converting Department of Osaka Napkin Company uses the average cost method and had 2,100 units in work in process that were 70% complete at the beginning of the period. During the period, 26,500 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period.
a. Determine the number of whole units to be accounted for and to be assigned costs for the period.
b. Determine the number of equivalent units of production for the period.
Answer:
a. Number of whole units to be accounted for and to be assigned costs for the period:
= 26,500 units + 1,200 units
= 27,700 units
b. Number of equivalent units of production for the period:
= 26,500 units + (1200 units*30%)
= 26,500 units + 360 units
= 26,860 units
